Bill 39 is now law in Manitoba – Retail Sales Tax to apply to certain insurance premiums
Effective July 15, 2012, premiums paid that relate entirely to coverage including Group Life, Dependent Life, Optional Life, Accidental Death & Dismemberment, Group Basic and Optional Critical Illness, Group Short and Long Term Disability will be subject to 7% Retail Sales Tax. The Canadian Life and Health Insurance Association (CLHIA) is still in talks with the Government of Manitoba as to which types of insurance will be subject to the tax, so the current list of types of insurance subject to the tax or exempt from it may change. Additionally, some insurers are still putting their administration processes in place in terms of how the taxes will be billed, collected and remitted. Further communication about the application of the tax and how it impacts your benefits plan will be forthcoming.